A 30 year bond has a principle amount of 1000 and a coupon, Ask an Expert

Economics

A 30 year bond has a principle amount of $1000 and a coupon rate of 5% per year, interest payments are paid semi-annually. If the maturity date from now is exactly 10 years and the current market rate for the same bond is 12% per year, compounded semi-annually.

a) how much the bond worth now?

b) If the current market rate is 4% today, how much is the bond worth today?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91708484

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